New SEC and FSA actions on short selling and disclosure requirements

New SEC and FSA actions on short selling and disclosure requirements
Download New SEC and FSA actions on short selling and disclosure requirements

On September 17, 2008, the SEC took decisive action that has been hinted at for weeks. It announced a formal crackdown on abusive short selling and market manipulation, giving the examination and enforcement staffs additional "weapons in their arsenal," according to Chairman Cox.

Also on September 17th, Chairman Cox announced that the SEC is considering a new disclosure requirement for short positions. One day later on September 18th, the FSA took the extraordinary step of banning short selling of financial services companies and introduced new disclosure requirements.